Talent Cultivation

■ Talent Cultivation and Development

Cultivation Program for Transformation Strategy

Amid the rapid changes in the global industry and economic environment, E.SUN has set strategic goals for the next decade, and cultivated key talents through a strategic talent cultivation plan to support the company's steady progress towards sustainable operation. In 2022, E.SUN adjusted the focus of its "ESG Sustainable Finance" and "Technology Empowerment" Cultivation Program and enhanced the overall training effectiveness, helping E.SUN move towards its target vision:

ESG Sustainable Finance Cultivation Program

Coverage ratio 100%

Program description

• Convey sustainable culture thinking
  • Objective：
    ESG sustainable development is a crucial strategic goal for E.SUN in its fourth decade. The principle of Growing the talent before growing the business guides E.SUN integrated ESG elements into a wellrounded talent development system.
    We also have relevant departments, such as the Green Finance Department, Sustainable Finance Department, and ESG Group of E.SUN FHC to serve as course instructors, leading employees to continually focus on ESG issues and jointly implement corporate sustainability responsibilities.
  • Target：
    All E.SUN employees
  • Cultivation Direction：
    In addition to general knowledge, many ESG-themed courses are incorporated into various training programs, inviting internal and external experts, and entrepreneurs involved in sustainability initiatives to share relevant issues. Furthermore, through activities such as tree planting, beach cleaning, and hiking, employees have the opportunity to participate in and implement sustainability firsthand.
  
  
• Becoming the Best Partner for Corporate Sustainability Transformation - Corporate Finance
  • Objective：
    E.SUN collaborates with like-minded corporate partners to launch the "E.SUN ESG Sustainability Initiative," with the Corporate Banking RM Team playing a vital role in companies' ESG development journey. Through various training methods and content, E.SUN systematically cultivates the RM Team's understanding of ESG market and international sustainable development trends, assisting enterprises in developing E.SUN ESG-related operations and becoming the best partner for Taiwan's corporate sustainability transformation.
  • Target：
    Corporate Banking Division, RM Teams
  • Cultivation Direction：
    To cultivate sustainable talents and enhance overall ESG expertise, E.SUN arranges relevant content education and training for all stages of the corporate banking career path. Subjects include global ESG development trends, domestic and foreign sustainable finance regulations, major international ESG evaluation institutions, industry ESG development overview, sustainability reports, ISO certification, carbon footprint, and sustainability-linked loans, and so on.
• Sustainable Finance Manager Training Program
  • Objective：
    Aiming to become a netzero emission bank by 2050, E.SUN systematically establishs a sustainable talent development system, nurturing more seeds for sustainable transformation, and making E.SUN a benchmark enterprise for sustainability.
  • Target：
    E.SUN practitioners with high relevance to their business scope and ESG.
  • Cultivation Direction：
    The course is co-designed by the "Taiwan Sustainable Energy Research Foundation" and E.SUN, and features top scholars and experts as lecturers. The content covers introduction to sustainable finance, climate change and sustainable supply chain management, etc. A total of 15 courses are planned, and a verification test is arranged after the class. In 2022, a total of 73 colleagues participated, and finally all members passed the test and became "Sustainable Financial Managers"
  

Business benefits and effectiveness of cultivation programs

E.SUN continues to pay attention to sustainable trends and customer needs, integrating ESG with business development. For example: Encourage customers to set sustainable goals and commit to Sustainable Linked Loan (ESG Linked Loan), Invest in various types of renewable energy project financing, assist customers in issuing sustainable development bonds, etc., and increase the proportion of sustainable credit in the overall corporate loan volume year after year, successfully creating a positive cycle of sustainability and business performance.

ESG Sustainable Finance Cultivation Program- Cultivation Outcomes

Item	Indicator	2020年	2021年	2022年
L1 Reaction	Course satisfaction	93.29%	94.80%	92.87%
L2 Learning	Course completion rate	99.87%	98.00%	97.73%
L3 Behavior	Number of training course participants taking part in volunteer activities	862	296	762
	Staff turnover rate(Corporate Banking Positions)	5.19%	7.1%	9.41%
L4 Results(NT$ M)	Green loans	11,106	18,726	53,741
	ESG-linked Loans	285	10,681	40,642
	Loans to ESG industries	249,685	261,464	272,415
	Total sustainable loans	261,076	290,871	340,876
L5 ROI	Profit / training course related costs	43.11	38.54	57.47

■ Talent Attraction and Retention

E.SUN carefully selects a group of like-minded partners. We actively invest resources in recruiting outstanding and potential talents, and are committed to making E.SUN the second home for employees by providing a competitive salary and welfare system that meets the needs of colleagues, so as to attract and retain the most suitable talents to build a hopeful future together.

■ Diverse welfare and employee care

• Providing complete, comprehensive, and diverse welfare and employee care measures and established a solid talent foundation and a harmonious workplace environment.
• Combining the concept of sustainable environmental management, we create an eco-friendly, innovative technology, and artistic atmosphere in the office space while considering the flexibility and creativity of interactions among colleagues.
• Actively promote a variety of health and leisure activities to encourage physical and mental well-being and work-life balance.
• Organizing "E.SUN Peak" events, which is teaming up to climb the highest mountain "Mt.Jade" in Taiwan, to inspire colleagues to challenge and overcome obstacles together with their team members in adversity.
• Encouraging childbirth by providing better-than-legally-required maternity leave (63 days), parental leave (8 days), pregnancy checkup accompaniment and paternity leave (8 days), and baby care leave (3 years), as well as establishing the "E.SUN Baby Development Fund", which not only encouraged employees to have children, but also had the effect of inducing other enterprises to emulate, thereby generating greater social influence.
• Aside from labor insurance and health insurance, E.SUN also provides life insurance, accident insurance, and critical illness insurance. Insurance premiums of an employee and his/her spouse and children are fully born by E.SUN; insurances for parents may be purchased at the employee's expense.
• In 2022, E.SUN won the prestigious "Asia's Best Employer" and "WeCare Best Employee Care" awards from the benchmark Asian talent magazine 《HR Asia》 and was the only financial holding company to win the Work-Life Balance Award.

Friendly workplace

Happy family

Quality mentor program Office spaces focused on safety, comfort, peopleoriented, technologically-smart, and artistic aesthetics Multiple working hours, flexible working hours, parttime working option and work from home Employee mess hall, parking lot, gym Creating a diverse and inclusive workplace environment, supporting gender equality and safeguarding the rights and interests of individuals with disabilities and indigenous people

Marriage / childbirth subsidies, NT$100,000 in E.SUN Baby Development Fund E.SUN handbook for new mothers, breastfeeding seminars for expecting mothers Paid maternity / paternity leave superior to statutory requirements Marriage related information forum Breastfeeding room, pregnancy clothes and child supplies sharing platform Employee savings and employee loans

Health initiative

Family care

Employee Assistance Program (EAP) psychological counseling services Expanding group insurance coverage scope and improving protection for employees and their families against specific risks Healthy weight loss programs, on-site flu vaccination stations Diversified health lectures, health check subsidies Hiking and cycling around Taiwan Social club activities (table tennis, badminton, aerobics classes and so on)

Mother / father's day cards and monetary E.SUN Choir and Concert for Mothers Child education subsidies, Outstanding children's award and E.SUN family care Special offers on children's foreign language learning activities Chinese New Year accommodation for employees and spouses Offer unpaid leave superior to legal requirements Music concerts (Vienna Boys' Choir, Mayday) and artistic events (E.SUN Awards: artists painting Yushan (Mt.Jade) for the celebrations for the 30th anniversary of E.SUN)

■ Comprehensive retirement protection

• For those subject to the "Labor Standards Act", E.SUN allocates retirement reserves ranging from 2%-15% of employee salaries to Taiwan Bank's special accounts on a monthly basis, all of which are fully allocated.
• For those whose employment started on July 1, 2005 or opted for the new pension system, E.SUN allocates a 6% monthly pension according to the law.
• Pension for overseas employees is subject to local laws and regulations.
• To reward employees with outstanding performance, retirement bonuses in addition to pension may be provided according to their work performance or special contributions.
• To encourage early retirement planning, E.SUN has established the employee savings association stocktrust. Employees who have passed probation are free to join the association, and the company contributes incentive bonuses thrice each year.
• Provide retirement trust projects exclusively for E.SUN employees, encouraging them to plan asset allocation early on to ensure their retirement lives.

■ Recruiting a Diverse Pool of Professionals and International Talents

Countries, industries and enterprises all need outstanding talents to generate momentum for innovation and progress. E.SUN has been deeply committed to nurturing Taiwan's financial, technological and cross-border professionals, and has actively dedicated to ESG field and cultivating international talents by collaborating with industrial partners, governments, academia, and research institutions in order to work toward the goal of being the international finance-leader.

Collaboration with Industries and Academia

Category	Item	Description	Effectiveness
Industries	ACT Dreamer Project -ESG influence project	Through courses and coaching, E.SUN collaborated with students on proposal and practice for ESG project in order to cultivate students to be world citizens whom are not only innovative but also are concerned about sustainability.	In 2022, E.SUN coached 8 groups (34 students) making proposals, selecting 2 groups as the representation of the bank for the final competition. Among those students, 3 students also participated in the summer intern program of the year.
	E.SUN AI Open Challenge	Upholding the idea of "enterprise members name the issues and participants solve the problems", since 2019, we have been holding the Artificial Intelligence Open Challenge, at which invited AI professionals to solve real financial problems with AI, thereby finding a better solution to sophisticated fin-tech decision-making.	This competitions participated by a total of 684 teams of 1,250 professionals in 2022. So far, we have hosted 8 competitions, which were participated by more than 10,000 AI professionals from 6,327 teams.
Governments	E.SUN International Talent Cultivating Program	E.SUN signed a memorandum of understanding with the International Cooperation and Development Fund in Q4, 2021 to nurture diversifiable international talents. The bank promoted finance courses in 2022.	The bank collaborated with the International Cooperation and Development Fund in order to promote training programs for foreign students. There were 13 international students participating in this program and one of them became the bank's management associate after graduation.
	College of Global Banking and Finance	E.SUN collaborated with governments to nurture excellent international finance talents by becoming one of joint contributions of National Chengchi University and National Sun Yat-Sen University.	In 2022, E.SUN has recommended 9 employees participated in the courses of Global Banking and Finance in National Chengchi University, and National Sun Yat-Sen University, and has sponsored NT$ 10 millions for these 2 universities.
Academia	Internship programs	E.SUN provides students aspiring to work in the financial industry with internship programs during each semester and summer/winter vacations to help them establish the right work attitude and improve their adaptability and competitiveness.	Interns of financial profession They include interns at the sections of financial services, wealth management, and corporate banking; there were 190 students in 2022, 885 interns have been accumulated since 2014. Summer Internship program There were 26 students participated in this program in 2022, and 252 interns have been accumulated since 2011. Interns of fintech professions To facilitate digital transformation, we actively cultivate and recruit talents having information and digital skills. There were a total of 6 students in 2021, and 38 interns have been accumulated since 2019.
	Scholarships	Cultivating talents in financial, technological, humanity, and nursing fields, and those from countries of ASEAN, through sponsoring on campus activities, financial courses and scholarship, and in so doing leave a nice impression on the staff and students of the academia.	Grants Distributed NT$ 960 thousands in 2022 to students from National Taiwan University, National ChengchiUniversity, and National Sun Yat-Sen University, etc. Scholarships In 2022, we awarded E.SUN Talents Scholarship to 36 students, distributed NT$4.7 million. - Nurturing outstanding management personnel Scholarship to 21 students(Management: 6 students; Technology: 5 students; Humanities:5 students; Inspirational role model: 5 students) - Nursing Talent Scholarship to 8 students - E.SUN ASEAN Scholarship to 7 students
Research	E.SUN AI and FinTech R&D Center	E.SUN has been committed to applying AI technology to various scenarios. Through the close collaboration between academia and the industry, results of research were successfully put to practical use and have thus enabled us to provide great financial services in fields such as risk control, operations, and marketing.	We established E.SUN AI and FinTech R&D Center with National Yang Ming Chiao Tung University in 2018, and AI and FinTech R&D Center with National Taiwan University in 2019, and worked on projects under the name of Academia Sinica X E.SUN AI R&D Center with Academia Sinica in 2020. In 2022, we conducted 14 projects with18 professors, including refining appraisal of real estate predictive model, strengthening speech recognition and comprehension in AI customer service, and enhancing technologies and models to apply operations in E.SUN.

International Talents' Attraction and Cultivation

Item	Description	Effectiveness
2022 E.SUN International Talent Cultivating Program(ITCP)	Selecting foreign students studying in Taiwan to participate in English finance lectures designed by E.SUN so as to enable those students to understand the ecosystem and development of Taiwan banking industry.	13 international students joined this program, including students from Vietnam, Indonesia, Malaysia, Thailand, Honduras, Haiti, Saint Lucia, etc.
E.SUN ASEAN Scholarship	Encouraging outstanding ASEAN talents to study in Taiwan, and cultivating them with international expertise and capabilities. Inviting those scholarship winners to join E.SUN charity events.	There were 7 scholarship winners in 2022. E.SUN has cultivated 33 students who are from Vietnam, Thailand, Myanmar, Cambodia, etc. since 2018.
Staffing of international talents	In response to the wave of internationalization, E.SUN has increased the hiring numbers of international talents since 2022 to strengthen the bilingual financial service in the banking system in Taiwan.	Since 2020, E.SUN has recruited 12 foreign talents from Japan, Germany, France, Malaysia, Myanmar, Cambodia, Vietnam, etc.

Foreign management associates experience sharing

■ Employee Care and Friendly Workplace Environment

E.SUN endeavors to build a happy and harmonious workplace that embraces friendliness. We optimize employee health care and workplace safety measures every year by attaching importance to workplace safety, by implementing hazards identification, and by assessing risks, so as to reduce potentially hazardous incidents and concerns. Meanwhile, we provide diverse health promotion activities and maintain the physical and mental health of employees. By uniting employees and family members, E.SUN hopes to become the strongest support for furthering colleagues' careers, and to become a happy enterprise that feels like a second home.

Occupational health and safety management system

In 2018, E.SUN became the first financial institution in Taiwan to pass the ISO45001 certification, which applied to all employees and contractors. We renewed the certificate in 2021 upon its expiration date. In 2022, we further passed the TOSHMS certification, and in 2023, the scope of verification will be extended to the newly established second headquarters building. Hazards identification and risk assessment are discussed and implemented jointly by occupational safety personnel and the representative of each department every year. The operation that was evaluated a high-risk operation for 2022 was "Commute/Go outside to visit customers". As so, traffic safety training was given at the on-job occupational safety training in that year. When an occupational hazard other than a traffic accident occurs, the occupational safety leader will assemble related personnel and jointly investigate the occupational hazard, and will propose countermeasures. By introducing systems and implementing the PDCA method, workplace safety is improved. The number of occupational injuries during working hours are effectively controlled, and the frequency and severity rate of disabling injuries in the past three years has remained stable. This clearly shows that improvement measures have a positive effect on employee safety.

■ Equal Work, Equal Pay; Diverse Communication Channels

Gender equality policies

• Equal remuneration
  E.SUN's remuneration policy is based on the duties of employees and complies with labor laws and regulations, including the Republic of China Labor Standards Act, Act of Gender Equality in Employment, and Employment Service Act. Salary standards are not differentiated due to gender. In 2022, the difference between the annual remuneration of men and women of the same salary grade in Taiwan was insignificant. The average monthly salary of general male and female employees in Taiwan is twice the basic salary of Taiwan.

Female / male remuneration ratio in Taiwan in 2022 ( Female ：Male )
Position level	Base salary	Annual remuneration
Executive	99:100	100:100
Management level	99:100	99:100
Non-management	98:100	98:100

Note1: The male/female remuneration ratio may differ slightly due to the number of (3) Employee Assistance Programs provide counseling services. individuals and personal performance.
Note2: Subjects included in this salary statistics table are full-time employees in Taiwan who have worked in E.SUN for no less than 1 year.

• Embracing Gender Diversity
  E.SUN has been long-term dedicated to promoting gender equality in the workplace, listening to diverse voices and suggestions, and actively supporting and protecting the freedom and rights of same-sex marriage, to ensure that employees and their same-sex spouses enjoy the same benefits, and is committed to creating a workplace free of discrimination. Since same-sex marriage became legalized in Taiwan, E.SUN has provided benefits and marriage subsidies to same-sex married employees, along with equal blessings. With the changing trends in social equality laws, E.SUN keeps pace with the times and implements Taiwan's national policy on gender equality by setting up gender-friendly restrooms in each of buildings. These restrooms provide convenient, secure, private, and fair facilities catering to the needs of people of diverse genders.
• Sexual harassment prevention
  To provide a safer workplace for employees, E.SUN focuses on workplace equality and gender equality protection, establishing the "Guidelines for the Establishment of Gender Equality Committee for E.SUN FHC and its Subsidiaries" and "Rules and Procedures for Sexual Harassment Prevention, Complaint and Punishment of E.SUN FHC and Its Subsidiaries" to clearly regulate complaint channels, complaint methods, investigation and review principles and penalties, and has announced the above regulations on the intranet. E.SUN has formulated a Sexual Harassment Complaints Review Committee. The chairman is Vice President or above, the committee is consisting of 9 committee members, and the proportion of female members is more than one-half. The investigation of a sexual harassment complaint incident shall commence within 7 days from the date the complaint was filed or referral was made to the Complaints Review Committee, and shall be completed within 2 months. In addition, E.SUN provides various channels for employees to voice their concerns and seek assistance when needed:
  (1) Dedicated sexual harassment complaint channels, including a hotline, fax line, and gender equality complaint mailbox.
  (2) The Sexual Harassment Complaints Review Committee conducts investigations based on objectivity, fairness, and professionalism, and imposes appropriate punishments according to the evaluation results.
  (3) Employee Assistance Programs provide counseling services.

■ Employee communication channels

E.SUN has always upheld the importance of paying attention to and listening to the voices of employees. E.SUN encourages employees to join the trade union and guarantees the freedom of association of employees; in 2022, the proportion of employees joining the trade union was 14.05%. A total of 4 labormanagement meetings were held to discuss 10 topics, including workdays and holidays, special leave regulations, overtime procedures, flexible working hours, etc. The above-mentioned labor-management agreement applies to 100% of all employees, but no group agreement signed. E.SUN established a "CHRO Mailbox", "Employee opinion reflection/ reporting section" and "E.SUN employees message board" to better understand the concerns of employees and listen to their suggestions and voices. Including queries and suggestions respecting diverse issues such as pandemic control measures,personnel system, employee welfare, leader management.

Results achieved through diverse communication channels

Communication Channel	Number of applications
CHRO mailbox	20
A special section for employee opinion reflection Including the mentorship mailbox; the reporting mailbox; and the complaint mailbox for gender equality issues and workplace bullying	6
E.SUN employees message board	330

■ 2022 Employee engagement survey

• Target:All Employees
• Purpose：To understand employees' feedback regarding the long-term development of E.SUN and plan subsequent improvement measures to address important proposals or trends.
• Topics：Commitment to organization, career development, remuneration, performance management, satisfaction with human resource systems, etc.
• Response rate：88.4%
• Engagement score：84.98%
• Survey result：
  (1) E.SUN communicates organizational development strategies with employees through knowledge sharing seminars, and sends out surveys afterwards to understand employees' job satisfaction, identification with the organization, and suggestions.
  (2) In 2022, due to interest rate hikes and market fluctuations, profits are not as good as in the past, which will affect some employees' variable compensation. Additionally, the implementation of the new assessment system has expanded the difference in variable compensation, and the comprehensive internal and external factors are reflected in the results of the engagement survey. After the investigation, E.SUN formulated the direction of improvement and held a company-wide opinion exchange meeting to directly respond to colleagues' questions.
• Improvement measures:
  (1) Continue to benchmark the performance system of international benchmark enterprises, improve the transparency of performance evaluation, and give colleagues instant feedback Communication, specific feedback and coaching.
  (2) Expand the difference in rewards according to job responsibilities and performance, which can better motivate those who perform well.
  (3) In response to the interest rate hike cycle, in order to meet the needs of employees to buy houses, the interest rate on employee mortgages has been reduced.

Employee engagement rate

	2019	2020	2021	2022
Male	96.79%	95.86%	92.11%	84.55%
Female	97.04%	96.31%	93.66%	85.34%
Management	98.88%	98.61%	96.26%	92.86%
Non-Management	95.93%	94.80%	91.50%	81.22%
Under 29	-	93.90%	90.13%	80.86%
30-50	-	97.23%	94.03%	85.95%
Over 51	-	99.78%	98.85%	96.91%
Total	96.93%	96.10%	92.97%	84.98%
Response rate	87.20%	75.50%	85.20%	88.40%

Note: In 2020, employee engagement age categories are divided into below 30 years old, 31-50 years old, and above 51 years old.